By FXEmpire.com

Introduction: News from the Euro and Swiss zone. EUR/CHF is frequently chosen for carry trades which involves going long a high-yielding currency (EURO – 3.50%) against a low-yielding one (CHF – 1.50%). Traders earn daily interest fees when holding this pair long (rollover fees).
- The interest rate differential between the European Bank(ECB) and the Swiss National Bank(SNB)
- Swiss and Euro zone fundamentals
Weekly Analysis and Recommendations:
The EUR/CHF ended the week it the same trading zone that it has been since April 6, 2012. With the euro hitting record lows there is no place for it to fall with the SNB floor. Markets are currently in risk aversion mode, with the JPY and USD hitting new highs. The Dollar Index has been trading well over .83.
Market sentiment remains negative towards the euro, but contagion is also affecting all European markets.
|
Date |
Open |
High |
Low |
Change % |
|
|
Jun 01, 2012 |
1.2012 |
1.2011 |
1.2014 |
1.2007 |
0.01% |
|
May 31, 2012 |
1.2011 |
1.2012 |
1.2021 |
1.2009 |
-0.01% |
|
May 30, 2012 |
1.2012 |
1.2011 |
1.2014 |
1.2008 |
0.01% |
|
May 29, 2012 |
1.2011 |
1.2020 |
1.2025 |
1.2009 |
-0.08% |
|
May 28, 2012 |
1.2021 |
1.2019 |
1.2032 |
1.2014 |
0.02% |
With Greece, Spain and Italy looking like train wrecks in motion, and the lack of leadership and direction from the EU and the quibbling between politicians and bankers, investors are dumping everything associated with the eurozone.
On Friday, investors also gave up on the US recovery after the Nonfarm payroll report showed that the US had only created 69,000 jobs and that unemployment had risen to 8.2%. The USD lost a bit of strength allowing the euro to pick up temporarily.
Switzerland’s eco data was also fairly negative with under forecast retail sales and PMI.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Major Economic Events for the week of May 28- June 1 actual v. forecast for Euro, GPB, and the Franc
|
Time |
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
Tuesday, May 29 |
||||||||
|
06:00 |
GBP |
CBI Distributive Trades Survey |
21 |
-7 |
-6 |
|||
|
Wednesday, May 30 |
||||||||
|
03:00 |
CHF |
KOF Leading Indicators |
0.81 |
0.48 |
0.43 |
|||
|
Thursday, May 31 |
||||||||
|
01:45 |
CHF |
GDP (QoQ) |
0.7% |
0.1% |
0.5% |
|||
|
02:00 |
GBP |
Nationwide HPI (MoM) |
0.3% |
0.2% |
-0.3% |
|||
|
05:00 |
EUR |
CPI (YoY) |
2.4% |
2.5% |
2.6% |
|||
|
Friday, June 01 |
||||||||
|
03:15 |
CHF |
Retail Sales (YoY) |
0.1% |
2.0% |
4.7% |
|||
|
03:30 |
CHF |
SVME PMI |
45.4 |
46.4 |
46.9 |
|||
|
04:00 |
EUR |
Manufacturing PMI |
45.1 |
45.0 |
45.0 |
|||
|
04:30 |
GBP |
Manufacturing PMI |
45.9 |
49.7 |
50.2 |
|||
|
05:00 |
EUR |
Unemployment Rate |
11.0% |
11.0% |
11.0% |
|||
Historical:
Highest: 1.5193 CHF on Oct 10, 2009.
Average: 1.3271 CHF over this period.
Lowest: 1.0083 CHF on Aug 9, 2011.

Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Forecast |
Previous |
|
Jun 5 |
9:00 |
EUR |
Retail Sales m/m |
0.3% |
|
10:00 |
EUR |
German Factory Orders m/m |
2.2% |
|
|
14:00 |
USD |
ISM Non-Manufacturing PMI |
53.5 |
|
|
Jun 6 |
6th-8th |
GBP |
Halifax HPI m/m |
|
|
8:30 |
GBP |
Construction PMI |
55.8 |
|
|
10:00 |
EUR |
German Industrial Production m/m |
2.8% |
|
|
12:30 |
EUR |
ECB Press Conference |
||
|
12:30 |
USD |
Revised Nonfarm Productivity q/q |
-0.5% |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
18:00 |
USD |
Beige Book |
||
|
23:01 |
GBP |
BRC Retail Sales Monitor y/y |
-3.3% |
|
|
Jun 7 |
7:00 |
CHF |
Foreign Currency Reserves |
235.6B |
|
7:15 |
CHF |
CPI m/m |
0.1% |
|
|
8:30 |
GBP |
Services PMI |
53.3 |
|
|
11:00 |
GBP |
Asset Purchase Facility |
325B |
|
|
11:00 |
GBP |
Official Bank Rate |
0.50% |
0.50% |
|
TBD |
GBP |
MPC Rate Statement |
||
|
12:30 |
USD |
Unemployment Claims |
383K |
|
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
||
|
Jun 8 |
8:30 |
GBP |
PPI Input m/m |
-1.5% |
|
8:30 |
GBP |
Consumer Inflation Expectations |
3.5% |
|
|
12:30 |
USD |
Trade Balance |
-51.8B |
|
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
Click here to read EUR/CHF Technical Analysis.
Originally posted here

